At present, more than 55 percent of the World’s population lives in internationally shared river basins. Shared waters could be either a source of conflict or a source of cooperation and prosperity. Today, the growing need for water resources for development has brought intense political and economic tensions among the countries that share rivers that flow across two or more countries. The aim of this paper is to identify the economic, social and political benefits of the transboundary cooperation by using the Nile Bain Initiative (NBI) as a case study. It also attempts to identify the obstacles that hinder transboundary cooperation in the Nile Basin. The paper argues that the riparian states in the Nile Basin should work for “benefit-sharing” rather than “water-sharing” and this should be the basis for their transboundary cooperation. It also claims that implementing the concept of benefit-sharing would help in solving problems that are caused by divergent interests among the riparian states in the Nile basin and the up stream-down stream problems frequently manifested in the area. The paper concludes by suggesting the main points that have to be considered in transboundary cooperation.Key Words: Africa, “benefit-sharing,” Nile Basin Initiative, transboundary cooperation, “water-sharing.”